Replacing Stock with Longer Dated Options
Long-term options (options expiring in more than 9 months) provide a cost-effective way of gaining long term exposure to stocks with a smaller capital outlay and limited risk. The average price of a stock in the TSX 60 has almost doubled in the last decade. This translates to significantly more capital being required to...
Entering Options Orders and Managing Positions
Learning how to trade options is a process that takes time and patience. A critical part of placing your first options trade is learning how to enter an order into your brokerage account. Entering options orders can be daunting due to the many variables involved. This post highlights the procedures and best practices for...
Enhancing Equity Positions with Options
Introduction Options are typically utilized and viewed as an instrument for trading the direction of stocks and ETFs with leverage. However, they are also useful to equity investors as a way to increase the yield of a portfolio by generating income and purchase stock at a discount. Investors looking to enhance their equity...
Options Insights: Increasing Yields on Equity Positions with Options
The 12th annual Options Education Day in collaboration with the Options Industry Council (OIC) will take place in Toronto on September 14, 2019 at the Westin Harbour Castle. Seats are limited, so sign up before August 19 for the early bird pricing! To learn more: m-x.ca/oed Want to learn more about Increasing Yields on...
Generating Income with Credit Vertical Spreads
Credit spreads are a popular strategy that is used to generate income with limited risk from a modest bullish, bearish or even neutral view on a stock or ETF. Many investors are attracted to writing higher delta options because of the higher premiums, but it is important to understand the tradeoff, which is that this will risk...
Minimizing Your Risk with Vertical Debit Spreads
What are debit spreads? Placing a trade on the direction of a stock using options typically requires purchasing a call or put option. When purchasing options, the largest headwind is erosion of the extrinsic value of an option over time. This is measured by the option’s theta. For a strategy to be profitable, one must predict...
Options Insights: Minimizing Risk with Debit Vertical Spreads
Want to learn more about Minimizing Risk with Debit Vertical Spreads? Participate to the webinar on August 13, 2019 at...
Maximizing Technical Analysis with Options Trading
As a market strategist and practitioner of technical analysis for over a decade, I have spent my share of time studying indicators, price patterns and trading strategies. Having worked with thousands of clients on technical based strategies, I find that the most important aspect of trading is trade and risk management....
Options Insights: Maximizing Technical Analysis with Options
Want to learn more about Maximizing Technical Analysis with Options? Participate to the webinar on July 30, 2019 at...
Hedging a Portfolio with Options
Hedging a portfolio against a correction in the markets is conceptually easy to understand. However, in practice there are multiple variables to consider and each requires customization based on portfolio sizing and market outlooks. To understand how to execute an efficient hedge on your portfolio, we’ve put together this...
Tony Zhang
Head of Product Strategy for OptionsPlay
OptionsPlay
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